Apple to invest up to 1.5bn dollars in Globalstar for satellite coverage expansion

Apple to invest up to 1.5bn dollars in Globalstar for satellite coverage expansion

Technology

Under the funding agreement, Apple will commit 1.1 billion doolars in cash

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 (Reuters) - Apple (AAPL.O) will invest up to $1.5 billion in Globalstar (GSAT.A), opens new tab to fund the expansion of its iPhone communication services, the satellite provider said in a regulatory filing on Friday.

Shares of Globalstar jumped over 30%, while Apple was down around 1.4% a day after it forecast tepid quarterly revenue growth.

Under the funding agreement, Apple will commit $1.1 billion in cash and also purchase 20% equity in Globalstar for $400 million. The satellite company said it will use a portion of the funds to pay down debt.

The move is another in a line of partnerships between space firms and mobile service providers looking to provide satellite-based connectivity to customers in regions with limited network access.

Globalstar also said it will allocate 85% of its network capacity to Apple. The deal is expected to close on Tuesday.

The iPhone maker partnered with Globalstar in 2022 for a feature that would allow Apple users to send emergency messages from remote areas.